Read an article about a “new” scam with Visa/MC/AMEX gift cards.
Crook takes gift card off the rack at store and scratches off the crap on back to get code.
Crook has little strip of whatever that crap is, recovers the code, and puts the card back on the rack.
Crook goes home and registers the card.
Gift Giver buys the card from the rack.
Crook receives email that the card is now activated (let’s assume it’s a $500 Visa gift card)
Crook posts a $300 Xbox One Bundle on eBay for $200 and eBay Buyer buys it immediately, sending crook $200 via PayPal
Crook uses Gift Giver’s Visa GC to buy the Xbox Bundle for $300 from Walmart.com and puts the eBay Buyer’s information in so it is shipped directly to eBay Buyer, leaving only $200 on the gift card.
So, next time you buy a gift card for someone, try to get one from behind the register or look really carefully at the little strip on back.
Sure, why not. We’re remodeling, so different people have gotten us a Lowes or Home Depot gift card from time to time or a starbucks gift card is nice for someone who goes there a lot, etc. Nice gesture for a coworker, that sort of stuff.
I haven’t purchased the store gift cards in a while so I don’t know how much they charge. But I didn’t appreciate Amex charging me five bucks for a $50 dollar card last time I had to buy it.
You could say that about all gifts though - why did you get me this hat? You could have gave me money and I can buy the hat or anything else myself. Gift card is just a way to show you are not completely half assed - just mostly.
I’ve only ever been charged a fee when buying a Visa gift card at my local supermarket. Have never paid a fee when buying or using a store or restaurant-specific card.
because all store gift cards are worth less in the secondary market than what the card says its worth, due to the illiquidity of it, that is the “charge” the store is applying. credit card gift cards = 100% of printed value but comes with an activation fee. cabelas or dress barn gift card = 80-90% of printed value but no activation fee. the credit card companies would probably have to charge much more for these cards to truly be equals.
I’ll buy gift cards for things I know I’ll use anyway. Also I have a credit card that gives me 5x points at office supply stores, so I’ll go and buy various gift cards there and then load them back to my account (Starbucks, Airbnb, whatever). They also make for easy Christmas gifts. There are no activation fees for merchant specific gift cards, only Visa/MC/Amex.
These things are the ultimate scams. I received a few for studies I did, they charge the buyer 100$ but there’s a 5$ activation fee for the user. They take 5% off the top for the privilege of using a VISA? C’monn mannnn